New Delhi, Feb. 11 -- Nvidia and Broadcom are increasingly being drawn into direct competition as artificial-intelligence companies look for the most cost-efficient way to train and run AI models. Analysts at UBS think demand is growing quickly for Broadcom's processors as an alternative.

Nvidia has enjoyed several years as the dominant provider of AI chips due to its strength in graphics-processing units (GPUs). However, the growth of Google's Tensor Processing Units (TPUs)-which Broadcom helped design-has brought the biggest competitive challenge yet.

The major change in the market this year is the potential ramping up of TPU sales to external clients. AI start-up Anthropic has made two major orders for them, totaling $21 billion, and...